India-US Bilateral Trade Agreement negotiations will resume on May 16 in Washington, with Commerce Minister Piyush Goyal heading the Indian negotiating team. The negotiations are at a critical juncture. Both nations hope to seal the first phase of a trade agreement before the 90-day halt on new US tariffs ends.
This hiatus, announced on April 9 by President Trump, involves a proposed 26% tariff on Indian products. India is racing ahead to safeguard its exports, particularly steel and aluminium, while also achieving broader market access.
Piyush Goyal to Head High-Level Delegation
For the bilateral negotiations, Piyush Goyal and India’s top negotiator, Rajesh Agrawal, will travel to the US. Their goal is to advance talks that have become more urgent in the wake of Trump’s recent trade restrictions. In keeping with pledges made during PM Modi’s February visit to Washington, the Indian side hopes to complete the deal by the fall of 2025.
India-US bilateral trade was $129 billion in 2024. India has a trade surplus of $45.7 billion with the US and Washington is its biggest trading partner. As the pressure of new tariffs builds, India wants to secure terms to safeguard priority sectors while increasing export opportunity.
WTO Retaliation Proposal Signals Assertiveness
Earlier this week, India informed the WTO of its intention to impose retaliatory tariffs on the US. The countermeasures are against American steel and aluminium tariffs, which the US reinstated in March at a rate of 25%.
As per the WTO, the US safeguard measures hit $7.6 billion of Indian imports, raising $1.91 billion in tariffs. India’s suggested retaliation would equate that amount in tariffs on US products.
Deal to Define Future Trade
New Delhi and Washington already agreed to reach $500 billion in annual trade by 2030. Attaining that relies on easier access for Indian goods, particularly steel. By negotiating during the pause in tariffs, India aims to sign a balanced deal that protects its economy without weakening its international trade position.
The next several weeks are going to be crucial. The success in Washington can redefine India-US trade relations for the decade to come.
